Gift Deed Registration

No. A minor cannot sign a contract. Even if he/she does, it is considered void ab initio. So, a minor cannot gift a property. But you can gift a property to a minor. In this case, the minor’s natural or legal guardian will accept the gift on the minor’s behalf. The guardian will be the gift’s caretaker until the minor becomes an adult and then the gift is automatically transferred to the real Donee (the minor who has become an adult).

The world is not so fair. For example, after the Donor’s death, there can be conflict between the siblings and one may try to snatch away the gift or threaten the Donee to transfer the gift or so on. Therefore, it is important to make a legal document such as gift deed and register it so that it becomes legalized and allows legitimate transfer of the property to the Donee. The Donee can claim legal ownership of the property and nobody else can claim that property.

Also, gift deed allows for quick transfer of property from the Donor to the Donee.

A gift deed cannot be revoked under regular circumstances wherein the Donee accepts the gift and the gift deed is valid. However, as per Section 126 of the Transfer of Property Act 1882, a gift deed can be revoked under two circumstances:

• The Donor and the Donee mutually agree to revoke the gift deed.
• The Donee fails to fulfill the conditions which were mentioned in the gift deed. For example, if the Donor mentioned the condition that the Donee will take care of him/her until his/her death and the Donee does not fulfill this condition, then the gift deed can be revoked. It is important that the condition is mentioned in the contract.

The following are the key differences between Will and Gift Deed:

• Will can be changed or revoked any number of times by the Testator (one who makes the will). On the contrary, a Gift Deed once executed cannot be revoked, except under special circumstances.
• Will is executed only after the Testator’s death. On the contrary, Gift Deed is executed immediately after it is made.

Yes. The procedure stays the same. A lawyer can help you in drafting and registering the gift deed.

Yes. When the value of the gift exceeds Rs. 50,000/-, then it is taxable (for the Donee). However, if you receive a gift from an NRI and the property is outside India, then it is exempt from tax.

A gift deed is invalid, if the Donee does not accept the gift or if the Donee dies before the gift deed is executed.

Also, if the Donee dies after the execution of the gift deed, then the property will go to the Donee’s legal heirs. It will not go back to the Donor, unless mentioned as a condition in the gift deed.